Gone are the days when lack of data or lack of easier way to
access the data prevented organizations from undertaking scientific
decisions. Today there is no dearth of data in public domain and we
have all the sophisticated ways to access data and process
them.
Having all the data can be beneficial to the companies or
organizations in the following manner:
- Data analysis provides lots of hidden patterns, trends and
insights about the business. There are various factors, cause
effect relationships that are not visible to common eyes unless we
look at data. An organization having ability to capture data and
then process data can benefit from plenty of hidden insights,
patterns and trends they present.
- Data and its subsequent analysis helps management make informed
and scientific decision making. Management can look at past
performance to figure out insights about the future performances.
The decision can now be informed, backed by analysis and trends
from past.
- Understanding the root cause of the problem and devise
strategies across the same: Data analysis helps management decipher
the root cause of a problem. It eliminates symptoms from core issue
or challenge. Once the root cause is known, management can then
build improvement measures around the same.
- Having lots of data regarding operations can help management
and organizations figure out the frequency and timing of
breakdowns. The firm can then design preventing maintenance plans
and thus eliminate plenty of unplanned downtime.
- Analysis of historical data presents management with a clear
snapshot of which business / segments / geographies are doing
better and which are not doing that great. Management can then take
a call to close down certain businesses or expand more in certain
segments.
- E commerce companies analyse the information of the buyers
based on their spending pattern, goods ordered, login time and
period. They gather insights from the data and the same is then
used towards digital marketing.
- Possession of huge amount of data is also the first building
block of artificial intelligence.